Fat Brand CEO Under SEC Investigation, Company Reveals
Shares of Fat Brands fell after the company revealed CEO Andrew Wiederhorn was under investigation.
The U.S. Attorney’s Office in Central California, along with the Securities and Exchange Commission, are investigating the company’s 2020 merger with Wiederhorn’s investment firm, Fog Cutter Capital Group.
GET FOX BUSINESS ON THE ROAD BY CLICKING HERE
Shares of the restaurant chain fell more than 22% following the news.
|FAT||FAT MARQUES INC.||8.14||-2.42||-22.92%|
The Securities and Exchange Commission “is formally seeking records and documents relating to, among other things, the company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between those entities and Mr. Wiederhorn, and offsets, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family” according to the regulatory filing.
The company is cooperating with the government on these matters, and the company is not currently the target of the U.S. attorney’s investigation, according to the filing.
FAT Brands owns, among others, Fatburger, Johnny Rockets, Twin Peaks and Fazoli’s.